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Ofgem raises household energy price cap by 4%, adding £60 a year
Ofgem said the cap would lift the average dual-fuel bill to £1,723 per year if sustained, with the increase set to take effect as October cold weather approaches.
UK energy regulator Ofgem announced a 4% rise to its household price cap from October, saying higher wholesale gas costs will push millions of households to the highest level in three years.
In its announcement, Ofgem said a typical household using both gas and electricity will pay £60 a year more, about £5 per month, though final bills will still depend on usage because the cap sets maximum unit prices rather than a fixed total bill.
Ofgem also said more than a third of households are on fixed tariffs, so their prices will not change, while 22 million households in England, Wales and Scotland remain on tariffs affected by the price cap.
The BBC reports the government will cut VAT from electricity bills in October, including for customers on fixed deals, and energy analysts at Cornwall Insight have forecast further domestic price increases of 9% in the new year.